The figure above shows the market for polio vaccination in Africa.

The figure above shows the market for polio vaccination in Africa.
 
  a) If the market is competitive and left unregulated, how many doses of vaccine will be administered?
  b) If the Melinda and Bill Gates Foundation underwrites the cost of the vaccine by paying for a large fraction of the preparation and delivery cost, what will happen to the number of doses administered? Why?

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Ques. 2

An attempt by a firm to create a monopoly and gain the economic profit from the monopoly is called
 
  A) collusion.
  B) intrusion.
  C) profit seeking.
  D) rent seeking.

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Ques. 3

The figure above shows Cindy's demand for CDs per year. a) What is Cindy's total consumer surplus if the price of a CD is 12? b) What is Cindy's total consumer surplus if the price of a CD is 9? c) What happens to Cindy's consumer surplus when
 
  the price of a CD falls?

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Ques. 4

Suppose the price elasticity of demand for Mexican food is 1.23 and the price elasticity of supply is 0.47. If the government imposes a tax on Mexican food, do buyers or sellers pay most of the tax? Why?
 
  What will be an ideal response?

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Ques. 5

The marginal cost of labor, MCL, is defined as the
 
  A) total cost of producing a certain amount of output.
  B) total cost of hiring an additional worker.
  C) additional cost of hiring an additional worker.
  D) additional fixed cost of producing an additional unit of output.

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Ques. 6

Indifference curves shift or rotate
 
  A) only when income changes.
  B) only when prices change.
  C) when either income or prices change.
  D) with none of the above because changes in income and prices do not shift indifference curves.

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Ques. 7

The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The firm maximizes its profit by
 
  A) producing 8 units and charging a price of 5.
  B) producing 8 units and charging a price of 15.
  C) producing 16 units and charging a price of 10.
  D) producing 20 units and charging a price of 25.

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Ques. 8

As illustrated in the above figure, after 40 gallons are produced each hour at Ike's Ice Cream Kitchen, the AVC curve starts to slope upward. The AVC starts to slope upward because the
 
  A) MC curve slopes upward.
  B) MC exceeds the AVC.
  C) ATC curve has not yet reached its minimum.
  D) None of the above answers is correct.